A member of the Ontario Vegetable Growers Alliance says the financial hardship of Thomas Canning in Essex County is having a major impact on local tomato growers.
The Maidstone tomato processing company is in receivership, and nine growers are suing to try and get the money they are owed.
Kent Bridge farmer John Lugtigheid says some of those farmers lost hundreds of thousands of dollars last year, even though they had other contracts.
"I know one grower, for instance, had 100 acres with Thomas and 200 acres with somebody else, but in reality he made zero money last year on his tomato crop, because he only delivered 25% of the Thomas portion, and you need $3,500 an acre return before you start making money," says Lugtigheid.
The farmers launched a $2.85-million lawsuit against Thomas Canning last year alleging the company reneged on contracts, leaving the bulk of their tomato harvest rotting in the fields.
Lugtigheid says the farmers likely won't get much money from the lawsuit and may lose their farms because the banks are first in line to get paid.
"Some guys I'm told might have to sell a farm or two. It's very tough, and not just on the financial end, it's tough on the emotional end and the family stress level when you plant a crop and you see it rot before your eyes, like they did last year," Lugtigheid says.
Lugtigheid says the financial instability at Thomas Canning came as no surprise to some farmers because some were paid late on occasion.
"Everybody was suspicious. Bill had been a good guy. The board did tell the people up front in the spring a year ago when you realize there's no financial security here. Growers don't stand ahead of the bank like labour does and I feel they should," says Lugtigheid.
